Fibria Celulose S.A. : Covenants Renegotiation
FIBRIA CELULOSE S.A. Publicly-Held Company CNPJ/MF
06/11/2012| 08:18pm US/Eastern
NOTICE TO THE MARKET
FIBRIA CELULOSE S.A. ("Fibria" or
"Company") (BM&FBOVESPA: FIBR3 | NYSE: FBR), in
compliance with article 157, § 4 of Law no. 6.404/76 and CVM
Instruction no. 358/2002, announces on this date that is has
renegotiated its covenants with its creditor financial
institutions such as to not only increase the maximum
leverage limits but also to change the calculation method for
all verification periods beginning June 30, 2012.
The Company informs that this negotiation was concluded
satisfactorily with its creditors in a spirit of reciprocity
and without the incurrence of a waiver fee.
FIBRIA CELULOSE S.A. Guilherme Perboyre Cavalcanti
Financial and Investor Relations Officer
The new calculation method of the "Net Debt/EBITDA"
indicator, used as a metric to verify fulfillment of the
covenants, will now consider total debt in U.S. dollars and
not in Reais. The portion of the debt in Reais will be
converted at the exchange rate at the close of the quarter
such as to express the total debt in U.S. dollars. On the
other hand, EBITDA of the last four quarters will be
converted at the average exchange rate of the U.S. dollar for
each of the periods. With this, the Company seeks to minimize
the volatility of the "Net Debt/EBITDA" indicator due to the
mismatch between exchange rates at the end of each period and
average exchange rates, as both debt and EBITDA will be
referenced in U.S. dollars.
We reiterate that the Company has a solid cash position equal
to more than three times (3x) short term debt, as disclosed
in the pro-forma results for the first quarter of 2012.
In line with its commitment to transparency with the market,
Fibria will disclose more information on this matter when it
announces its results for the second quarter on July 26, 2012
before market opening (BM&FBovespa and NYSE).
São Paulo, June 11, 2012.